Research Of Fair Value Measurement And Its Economic Consequences Based On The Concept Of Property Right Accounting

This paper is the achievement of intercross study on the subject ofAccounting and New Institutional Economics, which has made a deep studyon the issue of fair value measuring and the economic result it generates fromthe angle of Equity Accounting. It tries thinking and discussing about theproblems during the application of fair value in order to provide support forthe development and application of fair value under China’s specific systembackground and provide theory reference for improving the theory of fairvalue accounting appropriate for China.The close relation of property right and accounting is inherent. The coreissue of property right is its definition and protection, among which themeasuring problem is the most fundamental and basic. As a fundamentalinstrument of defining the relation of property right and protecting its benefit,accounting has always been the guarantee that makes the system of propertyright economic work effectively. The core of both property right andaccounting is measuring. The most important thing in economic developmentis how to optimize the measuring attribute and make it helpful to clearlydefine the property right and effectively protect it, increases the efficiency ofresource allocation and finally rationalized the property right system undermarket economic. As the outcome based on value measurement, not only doesthe measuring attribute of fair value fully embodies the two big function ofdefinition and protection of property right, which accounting possesses underthe system of property right economic, but its generation is also an inevitablerequirement of the development of property right in the essence.This paper firstly reviews and combing the research result of normative andempirical study from home and abroad before. Then through study of thehistorical evolution of fair value, it reviews the development history ofmeasuring attribute of accounting and compares the similarities and differences of relevant measuring attributes. It analyses the reason why fairvalue is criticized a lot in financial crisis and makes a rational introspectionon the applition of fair value in crisis. After that, by combining the studyachievement of the marginal and transitional subject of Property RightAccounting, it tries theoretical study on the issue of fair value measuring bythe theory of Property Accounting. Through introduction of the concept ofProperty Right of Accounting Information, this paper makes a deep theoreticalanalysis centered on the function of accounting, definition and protection ofproperty right. It absorbs a series of theory achievement of The Theory ofTransaction Cost, Coase Theorem, Externality Problem and The Theory ofRent Dissipation, and then makes explanation for a series of issues during theTheory of Fair Value and its practical use. Finally, have the aid of judgementof about property right arrangement and resources allocation of CoaseTheorem,this paper introduces the thought of Coase Theorem to the problemof selection of Coase Theorem on measuring attribute of accounting,andbrings forth two conclusions, following its demonstration to the conclusionderived from Coase Theorem by means of logical deduction and empiricalstudy.Study result shows that fair value that pursues value measuring candefine the property right more clearly and protect it more effectively.If themarket transaction cost is zero, quality feature of financial accouting andselection of measuring attribute won’t affect the efficiency of marketresources allocation.The system of accounting measuring will select the bestmeasuring mode automatically and make the policy of accounting informationusers reach Pareto Optimality. However,in case that practical markettransaction cost is positive, reasonale definition of property right ofaccounting information and selection of measuring attribute is essentialcondition of effective market resources allocation,i.e. selection of measuringattribute of fair value and historical cost will affect the policy of accountinginformation users as they have remarkable different value relativityThe main characteristic of this paper is its theoretical study on the issue offair value measuring from the perspective of property right accounting. It avoids in some extent the traditional barrier of theory study of talking aboutaccounting by means of accounting. And it makes intercross study betweenAccounting and New Institutional Economic, providing brand new study angleand achievement for the traditional accounting theory study of fair value.